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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (37866)	8/5/2005 12:46:41 PM
From: Ramsey Su	Respond to of 110194

There is nothing wrong with option ARMs. The teasers and other underwriting standards are the hammer and nails for the finance coffin. The subprimes are in deep kimchee, along with those who were forced to increase their portfolios. With rates going up, the portfolio that they were hoping to sell at the better price this qtr just went down in value. Now they have to raise rates which would most likely result in lower loan production. The vicious cycle has begun. Next in line may be thee mortgage insurers. This qtr has already proven to be quite challenging, bailed out by record low claims and reserves. It they need to add to the reserves due to higher claims, their profits are going to vanish overnight. Repent. Buy Costco. No, not Costco stock but the stock of Costco, bottled water, canned goods, etc. <ggggg>